PetChem Scores Big with Acquisition of Gebeng Derivatives Plant from BASF JV

KUALA LUMPUR- Petronas Chemicals Group Bhd (PCG) has announced that it has made a final investment decision (FID) to acquire the 113 kilo-tonnes per annum (ktpa) Maleic Anhydride (MAn) plant located in Gebeng, Kuantan, from BASF PETRONAS Chemicals Sdn. Bhd. (BPC). This acquisition will further strengthen PCG's position in the specialty chemicals market and will enable the company to expand its product portfolio. The Maleic Anhydride plant is expected to provide a significant boost to PCG's revenue and will enhance its capabilities in serving the growing demand for specialty chemicals in the region.

Commencement of the project execution phase, aimed at upgrading and rejuvenating the facilities to produce refined MAn, is indicated by the FID. The target completion date for this phase is set for the second half of 2025. The acquisition is expected to boost PCG's production capacity and improve its competitiveness in the global market. The decision was announced on June 13, 2023.

Petronas Chemicals Group Bhd (PetChem) has acquired BASF Petronas' Maleic Anhydride (MAn) plant in Pahang, Malaysia. The acquisition will allow PetChem to produce MAn in Kuantan, Pahang, by the first half of 2025. MAn is widely used in various industries such as coatings, polymers, unsaturated polyester resins, paints, and food flavoring. PetChem's managing director and CEO, Mohd Yusri Mohamed Yusof, stated that the acquisition represents the company's strong commitment to diversify into derivatives and specialty chemicals, enabling them to capitalize on new growth opportunities.

Yusri stated that the expansion of the plant would facilitate MAn's production to meet the increasing demand from customers in Asia-Pacific and the Indian subcontinents. The company also plans to explore potential growth opportunities in the European and Middle Eastern markets. enabling the integration of MAn's specialty chemical derivatives with its subsidiaries Perstorp and BRB, the new plant will pave the way for innovative solutions. Additionally, the plant would create possibilities for synergies with other MAn downstream manufacturers in Malaysia.

Petronas, the Malaysian energy conglomerate with worldwide reach, is steadfast in their dedication to driving societal advancement while upholding responsible and sustainable practices. The company continues to be a leading player in the petroleum industry, engaged in upstream exploration and production of oil and gas, as well as downstream refining, marketing, and distribution of petroleum products. In addition, Petronas is a top 10 most valuable O&G brand globally in 2022, thanks to its continued focus on innovation and performance. Company is involved in a wide range of activities, from exploring and producing oil and gas upstream to refining oil downstream. The company's activities also include marketing and distribution of petroleum products, trading, gas processing and liquefaction, operating gas transmission pipeline networks, marketing of liquefied natural gas, petrochemical manufacturing and marketing, shipping, automotive engineering, and property investment. 2015 to 2020, 2015 to 2020, Petronas was a significant contributor to the Malaysian government's revenue, accounting for over 15% of its income.